What's the most creative tax deduction you've taken?

[Rick Lee]

I am sooo chapped that I fall into a loophole for the repeat homebuyer credit. So I'm looking for ways to minimize my tax liability. I got spanked last year when my moving expenses and tiny rental property loss were less than the standard deduction. I'm closing on another house on 4/15 and only lived in my previous house for four of the previous eight years before making it a rental. The new tax credit requires five years. The previous house I did live in for more than five years, I sold before what could now be considered the eight year period. Since I've claimed rental income on my taxes for this property, I can't even lie about it with much chance of getting away with it. I'm wondering if there's some kind of LLC I can start to help my tax situation a bit. How do you do it?

[looneybin]

make babies, it's the best tax deduction / credit there is

[Rick Lee]

What's that - $1000 per child per year? I think that would be a huge net negative.

[legion]

Putting a new roof on my house yielded a HUGE energy tax credit.

When I took my welding class at the local community college a few years ago, I took an education credit because the class was part of an accredited job training program. (Even though I had no intention of becoming a welder.)

When I inherited stock a few years ago, I sold it at less than it was worth on the day I inherited it, and declared a capital loss.

[john70t]

Suk it up and pay the tax.
I'm not familiar with tax and/or law, but if the closing fell before the tax change perhaps there is a grandfather clause...? Better to be sure. Do. Not. Lie.

With all the expensive toys and no LLC, you need to do a little research. This is a advice for all Pelicans to get self-edumacated.

[legion]

Oh, and last year, facing a massive tax bill, I decided to put MORE in my 401k to reduce my tax bill. Better that I can keep my own money...

[RWebb]

Originally Posted by Rick Lee

What's that - $1000 per child per year? I think that would be a huge net negative.

if they turn out cute, you can sell them


BTW - never never lie to the the IRS - they can make you very unhappy for a looong time

consider paying a tax atty to get a real answer to your question

you can also call the IRS and ask them the answer - I did this once - the guy was very helpful, professional, and free - this will also get you out of any heavy penalties (but not interest) if something goes south later on.

you can even ask them for a "private letter ruling" on various matters - probably a wiki on that

[Turbo_pro]

Best tax scenario for to date:
Started with a corporate tax due of $106K
liquidated the sub S corp.
Used the assets to pay off the creditors (me) $80K in loans
IRS assessed civil penalty, 40% of tax due to each officer. (all officers me)
now tax liability 40% of 106K = $42.40
Offered assets to settle debt through auction.
IRS determined assets worth at $12.5
Sold assets outside of auction for $12.5 to third party
IRS accepted $12.5 as payment in full.
Used the loss $80K loan value minus received $12.5k =$67.50 right off as capital loss.
Third party used assets to start new business that hired me to run the business. 3years later bought that business for same $12.5.

[jtfreels]

I think Wayne tried to claim all of us as dependents.



Jay

[cashflyer]

When I go to the trade convention in Vegas each year, I write it all off as a business expense - including the hookers.

[john70t]

Oh, blow me. Actual estate money is now calculated as future potential. 5.5 and 6 is a world apart.

[ODDJOB UNO]

my SCORE 1/2-1600 OFF-ROAD RACEY CAR........................and ya know what???????????



i was AUDITED!






and i failed to claim all my expenses and actually got almost $1200 bucks back from the IRS!


pays to be honest.